SUPPLIER COMMENTS
Retail Outlook 2019
Business is tough, but we always seem to weather the storm. However the forecast for 2019 is one of calmer seas. Alan Cotton,
THROUGHOUT THIS YEAR ,
and although they are small
DIY & Industrial Trade News have been
victories, they are positive ones.
in contact with our loyal supporters,
We’ve seen a Nugent commission
the suppliers. This gives us a unique
of enquiry, Zondo commission of
insight into what is happening in the
enquiry, a new police commissioner
build and hardware industry, a view
being appointed, a business stimulus
of the fraternity without numbers,
plan, a job summit, investment
charts and forensic analyses. Some
summit, new leadership at Eskom,
might say this is only emotion and
Transnet, Prasa, SABC, Denel,
therefore worthless, but it is exactly
SAA and SA Express. We also got a
2018 was a good year for Kansai Plascon
that emotion that shows what people
new NPA boss.
despite tough market conditions and
are feeling about the current market
There are however a few matters
sales and marketing director at Kansai Plascon answers
THE PAINT MARKET SAW VERY LITTLE GROWTH WITH CONSUMERS UNDER PRESSURE
struggling economy. The paint market saw
space, ultimately this is the drive that
that’s is cause for concern and
very little growth with consumers under
takes us into the future.
the biggest red flag of them all
pressure and disposable income being
I said it earlier this year and I will
is expropriation of land without
limited. New product ranges introduced
say it again, being resilient and having
compensation. Highlighting this
to meet these changing consumer needs
business to continue to increase
the ability to adapt quickly to the
as a red flag is not because I am
were very well received by the trade and
efficiencies to eliminate wastage and
economic climate by South African
against it, but because the phrase
have performed exceptionally well.
reduce costs. We are now in a better
business people is astonishing.
in itself, ‘expropriation of land
We don’t need numbers on paper
We are positive about opportunities
position than ever to deliver on our
without compensation’ doesn’t
in 2019 although do expect the tough
retailers needs and provide market leading
to prove to us that the private
sound positive for future business
conditions to continue in addition to
solutions and inspiration for consumers to
sector is the driving force behind this
investment at all. Without clear
continued upward pressure on raw
change and enjoy their living spaces with
beautiful country’s economy.
policy in place, this is dangerous.
material pricing. This will require our
our quality products and support.
In fact government has made doing
We’ve seen what happens when
business very difficult, especially for
we entrust government with
new entrepreneurs, putting stumbling
state funds, I shudder to think
blocks in the way ranging from labour
how they can manage privately
law legislation and business practice
owned land for others. Land doesn’t
to the political climate.
promise wealth as much as social
After almost ten years of
grants do not promise prosperity.
having an incompetent leader as
Hard work, discipline and education
a president, Jacob Gedleyihlekisa
create wealth.
Rob Lister, divisional marketing director at Build it answers
THE BUILDING SECTOR HAD A PARTICULARLY TOUGH YEAR DUE TO THE RECESSION
Zuma’s hand was finally forced by
In 2019 we can expect a bumpy
the top ANC’s top structure and he
start. We are once again heading to
resigned on Valentine’s Day 2018.
the polling stations in May for the
The Building Sector had a particularly
Cyril Ramaphosa was then elected
national elections. We can expect
tough year due to the recession and
the new president of the ANC on
the ANC to win again with at least a
with limited capital infrastructural
21 December 2017.
50% majority. We can expect a bit
spend by Government. Challenges within
more political stability after that. The
Government has had a
South African business, knowing he
Trump/China trade war seems to be
negative impact on new housing spend in
is a businessman at heart too.
on ice for a bit so this should also
urban areas. The Cape Province obviously
stabilise emerging markets, which
has had its challenges with water, which put
includes South Africa.
a damper on building.
This was a breath of fresh air for
He ticked a few boxes in 2018 in the best interest of the country,
Build it, however, had an excellent year BUT TO GET TO A PRACTICAL LEVEL WE ASKED SUPPLIERS TO ANSWER TWO QUESTIONS:
a progressive and dynamic leadership. We have recently refreshed our brand to improve our image and offer to the consumer, which will include a host of
regardless of the problems due to the fact
essential services including kitchen
that our target market is more rural and we
installation, plumbing and electrical
are a 90% cash business. We are continuing
specialists, board cutting and paint mixing.
1
How was business in 2018?
to build our range to compete in the repair, maintenance and home improvement
traction with great quality products at very
2
What do you expect for business in 2019?
sector going forward.
competitive pricing.
... and this is how they answered. 8 | RETAIL OUTLOOK JANUARY 2019
We are excited about 2019 and hope that
Our private label offering is gaining
We believe 2019 will be a great year for
the political landscape will settle and give
the Building Distribution Sector especially in
certainty to the future of the country under
the target market that Build it services.